VANCOUVER - Skeena Resources Limited (TSX: SKE) (NYSE: SKE) ('Skeena' or the 'Company') is pleased to announce the discovery of a significant zone of near surface, footwall style mineralization, the 23 Zone.
This new zone is outside the limits of the Company's current pit-constrained mineral resources at the Eskay Creek gold-silver project ('Eskay Creek' or the 'Project') located in the Golden Triangle of British Columbia. Analytical results from the recently completed drill holes are detailed in this release. Reference images are presented at the end of this release as well as on the Company's website.
New 23 Zone Discovery Highlights
0.99 g/t Au, 6.5 g/t Ag (1.08 g/t AuEq) over 90.00 m (SK-21-945)
1.30 g/t Au, 31.4 g/t Ag (1.72 g/t AuEq) over 43.39 m (SK-21-946)
2.14 g/t Au, 14.6 g/t Ag (2.33 g/t AuEq) over 59.91 m (SK-21-947)
Gold Equivalent (AuEq) calculated via the formula: Au (g/t) + [Ag (g/t) / 75]. True widths and zone geometries cannot be definitively determined at this time. Grade-capping of individual assays has not been applied to the Au and Ag assays informing the length-weighted AuEq composites. Metallurgical processing recoveries have not been applied to the AuEq calculation and are taken at 100%. Samples below detection limit were nulled to a value of zero.
New 23 Zone Discovered Outside Current Resources
Situated beyond the extents of the currently defined pit-constrained resources at Eskay Creek, the Company has discovered a new zone of near surface Au-Ag mineralization beginning only 15 m vertically below surface. This new 23 Zone was revealed by Q4 2021 drilling as part of the ongoing regional exploration program.
Positioned 200 m east of the high-grade 21A Zone, the area was historically drilled from surface by previous operators on widely spaced drill centers. Selective drill hole sampling during this era meant that the discovery of the larger and more robust mineralized widths observed as a result of the 2021 drilling program, were missed historically. This lack of non-continuous historical sampling is evidenced by 2021 drill hole SK-21-947 which intersected 2.14 g/t Au, 14.6 g/t Ag (2.33 g/t AuEq) over 59.91 m only metres away from historical 1990 drill hole CA90-511 which due to non-continuous sampling only reported 1.97 g/t AuEq and 0.84 g/t AuEq over 2.00 and 8.00 m, respectively.
Mineralization in the 23 Zone is almost exclusively hosted within dacitic volcanic rocks and to a lesser degree, the overlying Lower Mudstone unit. As such, the Au-Ag tenor is consistent with that observed in footwall mineralization elsewhere on the property (21A, 21B, 21C, 22 Zones). Concentrations of the epithermal suite of elements (As, Hg, Sb) are negligible, as is the case with this style of footwall mineralization across Eskay Creek.
Drilling to date indicates a shallow, westerly dipping geometry and the 23 Zone remains open for expansion in all directions. Proximity to surface, in addition to the grades and widths of this evolving zone are a perfect complement to the existing mine plan and potential throughput expansion.
22 Zone and Eastern Limb Targets
Drilling along the southeastern strike extension of the 22 Zone was performed on 50 m spacings. Most notably, 2021 drill hole SK-21-927 intersected 3.39 g/t Au, 4.8 g/t Ag (3.45 g/t AuEq) over 21.55 m in the Even Lower Mudstone (ELM) approximately 200 metres southeast of the 22 Zone. This broader interval included a visible gold bearing subinterval grading 59.10 g/t Au, 61.5 g/t Ag (59.92 g/t AuEq) over 0.65 m and 19.55 g/t Au, 7.4 g/t Ag (19.65 g/t AuEq) over 0.95 m.
Gold in soil anomalies supported by geological considerations were targeted by nine drill holes on the eastern limb of the property. Despite intersecting highly altered host rocks, no significant grades were returned in these specific locations.
Current Status - Exploration
The regional exploration drilling program was designed to pragmatically test near surface targets across the property with the goal of delineating additional near surface resources to supplement the existing mine plan. To date, 72 drill holes totaling 12,890 m have been completed representing 37% of the budgeted 35,000 m drill program. The outstanding meterage will be drilled once the Albino Waste Facility drill program has been completed in Q2 2022.
About Skeena
Skeena Resources Limited is a Canadian mining exploration and development company focused on revitalizing the past-producing Eskay Creek gold-silver mine located in Tahltan Territory in the Golden Triangle of northwest British Columbia, Canada. The Company released a Prefeasibility Study for Eskay Creek in July 2021 which highlights an open-pit average grade of 4.57 g/t AuEq, an after-tax NPV5% of C$1.4B, 56% IRR, and a 1.4-year payback at US$1,550/oz Au. Skeena is currently completing both infill and exploration drilling to advance Eskay Creek to full Feasibility Study in Q1 2022.
Contact:
Walter Coles Jr.
Tel: +1 604 684 8725
Email: info@skeenaresources.com
Web: www.skeenaresources.com
Cautionary note regarding forward-looking statements
Certain statements and information contained or incorporated by reference in this press release constitute 'forward-looking information' and 'forward-looking statements' within the meaning of applicable Canadian and United States securities legislation (collectively, 'forward-looking statements'). These statements relate to future events or our future performance. The use of words such as 'anticipates', 'believes', 'proposes', 'contemplates', 'generates', 'targets', 'is projected', 'is planned', 'considers', 'estimates', 'expects', 'is expected', 'potential' and similar expressions, or statements that certain actions, events or results 'may', 'might', 'will', 'could', or 'would' be taken, achieved, or occur, may identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Specific forward-looking statements contained herein include, but are not limited to, statements regarding the results of the PFS, completion of a feasibility study, processing capacity of the mine, anticipated mine life, probable reserves, estimated project capital and operating costs, sustaining costs, results of test work and studies, planned environmental assessments, the future price of metals, metal concentrate, and future exploration and development. Such forward-looking statements are based on material factors and/or assumptions which include, but are not limited to, the estimation of mineral resources and reserves, the realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount of future exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals, environmental risks, title disputes and the assumptions set forth herein and in the Company's Management's Discussion and Analysis ('MD&A') for the year ended December 31, 2020, and the Company's Annual Information Form ('AIF') dated March 25, 2021. Such forward-looking statements represent the Company's management expectations, estimates and projections regarding future events or circumstances on the date the statements are made, and are necessarily based on several estimates and assumptions that, while considered reasonable by the Company as of the date hereof, are not guarantees of future performance. Actual events and results may differ materially from those described herein, and are subject to significant operational, business, economic, and regulatory risks and uncertainties. The risks and uncertainties that may affect the forward-looking statements in this press release include, among others: the inherent risks involved in exploration and development of mineral properties, including permitting and other government approvals; changes in economic conditions, including changes in the price of gold and other key variables; changes in mine plans and other factors, including accidents, equipment breakdown, bad weather and other project execution delays, many of which are beyond the control of the Company; environmental risks and unanticipated reclamation expenses and other risk factors identified in the Company's 2020 MD&A and AIF, and in the Company's other periodic filings with securities and regulatory authorities in Canada and the United States that are available on SEDAR at www.sedar.com or on EDGAR at www.sec.gov.
